Your credit file is a bit like your business’s reputation among lenders: built slowly, damaged quickly, and usually repairable with time and good habits. The good news is that it’s not a mystery. Here’s how it works in New Zealand, in plain English.
Who keeps credit files in New Zealand?
There are three consumer credit reporting agencies, according to govt.nz:
- Centrix
- Equifax
- Experian — which completed its acquisition of illion’s Australian and New Zealand business in 2024. You may still see the illion name in older articles and on some services.
Each agency collects information from lenders, utilities, telcos and public records. They don’t all receive the same data, so your file — and your score — can differ from one to the next.
What’s on my credit file?
Typically:
- Identity details — name, date of birth, addresses.
- Credit enquiries — when you’ve applied for credit, and with whom.
- Accounts — credit cards, loans, mortgages and some utility or phone accounts.
- Repayment history — whether you’ve paid on time. Centrix notes this is typically held for two years.
- Defaults — overdue debts reported by a creditor. These generally stay for five years, though their impact fades and paying them helps.
- Public records — judgments, insolvency events and company director information.
New Zealand has had “comprehensive” credit reporting for some years, meaning positive information (like paying on time) can be recorded alongside negative events. That’s good news: consistent on-time payments actively help.
How are credit scores calculated?
Each agency uses its own model. Centrix and Equifax scores run on scales up to 1,000; other scales differ. Centrix describes most scores as falling between 500 and 900, with scores above about 705 considered good. Common factors include:
| Factor | Effect |
|---|---|
| Paying on time, every time | Helps |
| Defaults and arrears | Hurts, more when recent |
| Lots of recent credit applications | Hurts — suggests you’re seeking credit urgently |
| Short or thin credit history | Can lower your score even without any bad marks |
| Stable address and details | Helps |
How do business credit checks work?
For sole traders, the business and the person are the same, so your personal file is the main one lenders see.
For companies, lenders may check the company’s own commercial credit file and the personal files of directors and guarantors. In a small company, the directors’ history often carries as much weight as the company’s.
Tax debt is increasingly relevant too. Inland Revenue announced in 2025 that it would make more use of its long-standing power to share information about companies’ serious tax debt with credit reporting agencies. It has said companies that engage with it and keep to payment arrangements generally won’t be reported. See falling behind with IRD.
How do I check my credit report for free?
Each agency offers a free way to request your own report. Equifax, for example, notes a turnaround of up to 10 business days for its free report, with paid options if you need it faster. Checking your own file doesn’t affect your score.
Check all three. Look for:
- accounts you don’t recognise (a sign of identity fraud);
- defaults that have been paid but not updated;
- wrong addresses or details;
- enquiries you didn’t make.
If something’s wrong, contact the agency. Credit reporters must take reasonable steps to correct information that’s wrong, and you can escalate to the Privacy Commissioner if they don’t.
How can I improve my score?
The honest answer: mostly with time and consistency. But some things help faster:
- Fix errors — often the quickest win.
- Pay overdue accounts and ask for defaults to be updated as paid.
- Pay every bill on time, including phone and power — set up direct debits.
- Stop applying everywhere. Each application can leave an enquiry. One well-targeted application beats five hopeful ones.
- Keep your details current so your file stays accurate.
- Don’t close all your old accounts at once; a longer history can help.
Think of your credit score as a trailing indicator. It shows what you did last year. What you do this month will show up next year.
What if my credit is already damaged?
It’s not the end of the road. Some lenders, including property-secured lenders on our panel, consider bad credit, defaults and arrears case by case. Unsecured lenders consider weaker credit alongside how your business bank account is running now. The key is honesty: explain what happened, when, and what’s changed. Our page on getting funding with bad credit covers your options.
Does enquiring with LendFriend affect my score?
No. Our 60-second enquiry doesn’t affect your credit score. A lender only runs a credit check later, with your permission, if you choose to go ahead with an application. That’s part of matching you with the right lender first, instead of applying blindly and collecting enquiries along the way.
And if you do need funding…
That's where we come in. Tell us what's going on and we'll match you with a lender from our panel that fits — and tell you honestly if borrowing isn't the right move.
Quick questions
Does checking my own credit score lower it?
No. Requesting your own credit report or score doesn't count against you. Enquiries from applying for credit are what can affect your score.
Why is my score different at each credit agency?
Each agency collects information from different sources and uses its own scoring model and scale. It's normal for your scores to differ, which is why it's worth checking all three.
Do business lenders check my personal credit?
Usually, yes — especially for sole traders and for directors of small companies. They may also check the company's own credit file.